02406cam a22002657 4500001000700000003000500007005001700012008004100029100002200070245016200092260006600254490004200320500001900362520127800381530006101659538007201720538003601792690006701828700002401895700002701919710004201946830007701988856003802065856003702103w14483NBER20170926160359.0170926s2008 mau||||fs|||| 000 0 eng d1 aTella, Rafael Di.10aReality versus Propaganda in the Formation of Beliefs about Privatizationh[electronic resource] /cRafael Di Tella, Sebastian Galiani, Ernesto Schargrodsky. aCambridge, Mass.bNational Bureau of Economic Researchc2008.1 aNBER working paper seriesvno. w14483 aNovember 2008.3 aArgentina privatized most public utilities during the 1990's but re-nationalized the main water company in 2006. We study beliefs about the benefits of the privatization of water services amongst low and middle income groups immediately after the 2006 nationalization. Negative opinions about the privatization prevail. These are particularly strong amongst households that did not benefit from the privatization and amongst households that were reminded of the government's negative views about the privatization. A person's beliefs of the benefits of the water privatization were almost 30% more negative (relative to other privatizations) if his/her household did not gain access to water after the privatization. Similarly, a person's view of the water privatization (relative to other privatizations) was 16% more negative if he/she was read a vignette with some of the negative statements about the water privatization that Argentina's President expressed during the nationalization process. Interestingly, the effect of the vignette on households that gained water is insignificant, while it is largest (and significant) amongst households that did not gain water during the privatization. This suggests that propaganda was persuasive when it had a basis on reality. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aP16 - Political Economy2Journal of Economic Literature class.1 aGaliani, Sebastian.1 aSchargrodsky, Ernesto.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w14483.4 uhttp://www.nber.org/papers/w1448341uhttp://dx.doi.org/10.3386/w14483